NFT art will never be mass market - NFT licenses can

Visa got a sophisticated new avatar on Twitter this August, and while it's not that long ago, a seemingly instant 8-bit photo of a Mohawk woman still appears in dozens of titles. Not only is the price relatively high at $150,000. The fact that the financial giant bought irreplaceable tokens (NFTs) representing images from the CryptoPunks collection set off fireworks in the media. This was Visa's best marketing spend of the year - the return on investment in news articles alone must have increased purchases tenfold.

Yes, even Visa "monkey" in today's NFT to use the phrase, NFT collectors lost a lot in the rich era, pouring millions into monkey jpeg files. But while technology's journey from memes to riches has brought it into the world of digital art, I don't think that's going to happen in the mass market. So far everyone knows that NFT basically brings uniqueness and rarity, characteristic of traditional high art, into all forms and forms of digital art that can be reproduced indefinitely with good old copy-paste. A link to a specific photo, audio or video is sent to the blockchain as part of the transaction and we are there - although the file can still be copied and pasted, only one wallet has its own token. Here comes the challenge: Posting an NFT image as an avatar on Twitter is like wearing a Rolex watch with your name engraved on it. This is a status symbol that acquaintances should appreciate.

However, high art and luxury by definition are antonyms of mass market as high prices and uniqueness are their main selling points. Someone who spends money to death can buy a relationship with millions, but that's because they can burn their money for fun and want to show their wealth to the world. Good luck asking Joe the usual $150,000 for the link to the photo. The focus on NFT as an art, by definition, limits the promising technology to a relatively small, if undeniably elegant and eccentric niche. The good thing is that the huge sale of NFT digital art made headlines, which helped get NFT into the mass stream. However, this will not be the main use of NFT in the future, but rather a new and expensive toy for the rich and some very passionate crypto personalities and communities.

• TRULY
• NFT CAN FIX IT

Truly

First, NFT already has a mass-market case - they're really excited about the game because CryptoKitties collects tons of titles during the day. From Axie Infinity to all the latest titles, NFTs power the digital economy, and there they do more than just uniqueness.

Yes, it's great that your NFT sword is unique and has your name on the symbol, but what's even better is that unlike other non-unique weapons, it can decapitate a dragon in one fell swoop. And a decapitated reptile is what people are willing to pay for. Fortnite, a free-to-play game, grossed its publisher $5.1 billion from in-game cosmetic sales in 2020, and players are already paying for non-unique weapons, mounts, castles, and spaceships in dozens of other games. NFT is just the next step in that direction. And believe it or not, in some developing countries, NFT games are already a legitimate source of income.

Equally promising is the idea of using NFT in the corporate world as part of traditional business processes. An area where NFT is likely to grow if it doesn't become a new way of doing things by default isn't nearly as sexy as high-end luxury. However, you will benefit greatly from the most important feature that NFT has: the ability to verify the authenticity of the associated digital asset. For example, this could be as simple as hashing a financial document stored as an NFT on a private or to then check if it has been forged.

Software licensing and authentication appears to be one area where, given enough time, NFT will shine with the benefits of possible interoperability. Companies and individuals can purchase licensed pieces of software on a single platform and rent them out for as long as needed. This reduces costs while keeping key information officers secure, as they have an additional layer of security and know that any digital asset can be authenticated securely and quickly.

For those of you, like me, remember buying a copy of Windows or Adobe CS3 and having a sticker on the back of the serial number box. He lost the box and that was it. These have been replaced with SaaS entries that store your serial number, or platforms like Apple's Steam and the App Store that store your digital assets - unless Apple decides, of course, that it doesn't remove the rights to "Goonies HD" in-store your only purchases. Did you buy it? Very bad. The same applies if the platform has been shut down or the company determines that you are in any way violating their 2000-page Terms of Use, which you agree to without reading it. The bottom line is, with a SaaS-based subscription, you don't own anything, even if the solution is implemented in place.

Also read: Disneyworld of NFTs is what the virtual economy seeks to achieve

NFT can fix it

For example, you buy an asset, any digital asset - music, movies, software license, restricted photo usage rights, etc. At the time of purchase, the platform unearths an irreplaceable token that points to the original file or location for download. The token serves as proof of purchase. You store assets locally and most likely access them via an app that uses your token to verify ownership (or if your license hasn't expired, for example) when trying to interact with it, which is a copy and paste distribution and other IP violation.

If properly designed, such a system would even allow the transfer of property rights, provided the rights are legally incorporated into the NFT. That way, once you've enjoyed your copy of Goonies, you can give it to a friend or resell it, perhaps for a small royalty to be paid to the film rights owner or original seller. . Incidentally, the latter partially solves the problem that triggered the transition to SaaS in the first place. The company doesn't want a secondary market because it competes with their sales, but with the royalties embedded in the NFT, they will engage in further resale. In other words, every copy of the film sold becomes a gift to pass on.

Of course, it's the real estate department that needs more work, especially in the legal field. None of these concepts have been tested, but they should, by either artists or collectors, just set a precedent and write a book on this terra incognita. Technical expertise and business or legal expertise are not the same thing. Some of us remember selling EOS tokens and how much money raised had to be withheld before the SEC completed its investigation. Projects discussing their legitimacy and proving their legitimacy in court are two different things.

While NFTs are not without their flaws, their disapproval of being an inherently toxic and deceptive technology at the start of its development is at its best. On the other hand, districts need more regulation on the one hand and more entrepreneurship on the other. Art and business go hand in hand these days, and with the advent of NFT, its meme-to-wealth path is likely to take it into the corporate world.